The increase of the minimum monthly wage (MMW) in Lithuania will not resolve the problems of those who receive it and will only burden small-scale business and hinder the newcomers’ access to the labor market, said President of the Lithuanian Free Market Institute Žilvinas Šilėnas, bnn-news.com reports.
According to him, Lithuania often overestimates the size of the MMW. Silenas says there are other economic decisions that would be more efficient in improving the well-being of those in need, The Baltic Times reported.
«This decision (of the Government to push up the MMW to 850 litas (246 euros) – ELTA) would be viable if some other long-awaited changes were made too, first of all, if the Labor Code was updated. Now we have a growing wage but the Labor Code remains unchanged: old, stiff and preventing business development,» he said in an interview with ELTA.
He adds that the aim of the MMW is not about ensuring a minimum means of subsistence. The MMW is rather a state provided minimum price for job that an employer had to pay to an employee.
Well, that guy is from the Free-Market Institute….its like asking George W. Bush about improving the Human Rights situation in Guantanamo. …
The minimum wage should be taken away completely – it only increases the unemployment. Like in many other countries, it should be up to the employer and the employee (possible with the help of a trade union) to agree on a price for work. It is nothing the politicians should interfere with. If they want to give low-earners a higher income, they must lower their taxes instead of sabotaging the labour market.